Tuesday, August 21, 2012
EURUSD Ichimoku Strategy (Long) update
This was an update from previous post and the current positions for EURUSD.
As mentioned from previous post, aggressive position takers can initiate positions then with stop below the kumo cloud. Waited a day after and initiated a long position with stop loss below the kumo cloud.
Price action had consolidated for few periods before moving upwards in accelerated manner.
Moderate position takers would have established long position around 12380 to 12400 level during Asian session earlier today.
Current price action rally is encouraging, with price trading above tenkan sen, tenkan sen above jikun sen, both above the kumo cloud, and chikou span traded above the past 26 periods high.
What is more important is price itself trading above all period highs from 6 July. Looking back, the net short positions established between price level 12400-12750 from early June to early July will have to make a decision. Exit? Hold? or Add on?
Depending how the price action reveals itself in the coming days, consolidation between 12500-12700 is anticipated. A strong uptrend reversal perhaps could only happen when price traded above 12800.
If position has been established, may consider exiting some when tenkan-sen and jikun-sen diverge away from each other
If no position, stay put. Aggressive position taker can consider going long when price touches jikun-sen, moderate position taker can consider going long when price touches kumo cloud top. With stop loss below the kumo cloud.
Do not advice to go short.